The Jefferson Performing Arts Society operates on a seven-figure budget, spending about $2 million annually in recent years, according to the group's own filings with the federal government..

The audit's findings, however, are already having an impact on the group and its funding.

The audit was ordered by Jefferson Parish government. It concluded: "Because of the lack of internal controls in place at the Jefferson Performing Arts Society, it cannot be assured that public funds provided by Jefferson Parish are being utilized properly and efficiently and that fraud is not occurring."

On a Sunday afternoon at the East Jefferson High School Auditorium, there was a sizable line leading to the box office for the organization’s performance of “The Full Monty.”

The society was formed more than 30 years ago by Dennis Assaf and is funded through ticket sales, donations, sponsorships and hundreds of thousands of dollars in public money from the state of Louisiana, Jefferson Parish and the city of Westwego.

The money helps put a quality product on the stage. But the audit raises concerns that not all of the funding may be used properly.

“A lot of this has gone on for many, many years unchecked, and we are checking now and you're going to discover certain things,” said Jefferson Parish President John Young.

Auditors found issues such as a "lack of segregation of duties regarding accounts payable.” The report said Assaf, the executive director could "incur an expense, approve the expense and sign the check paying for the expense,” which is not the best financial practice, according to audit.

The audit also found "all employees had access to check requisition forms that had been photocopied with the executive director's signature already included, approving the requisition. Because there was no evidence or requirement for any other review, it cannot be assured that all payments made by JPAS are authorized and appropriate business expenses."

After initially denying our repeated requests for an interview, Assaf told us at the performance of “The Full Monty” that he has looked at the audit, which is marked to indicate it was completed in late January.

Assaf questioned the timing of the I-Team’s story.

“It hurts a lot. It really does,” Assaf said. “So, I wish you would wait until we've had a chance to absorb it.”

There's more in the audit that Assaf may have to explain.

Several JPAS employees have credit cards issued in their names.

Auditors found JPAS workers put more than $250,000 on credit a lot of it "undocumented" expenses.

The report said the group "had inadequate control over employee credit card usage. The business manager attempted to match the credit card statements to the credit card receipts, but often, the credit card receipts were not attached. Because of the numerous credit card charges without supporting invoices, (the) internal audit is unable to ensure that credit cards were not abused by employees for personal use."

Auditors specifically questioned numerous purchases made with those credit cards: meals, gasoline and groceries, and the report said there is no documentation of the business purpose of the purchases.

The report also notes in a year and a half period, from January 2011 through fall 2012, Assaf was reimbursed over $15,000.

Auditors explained that "several of these reimbursements were based on photocopies of credit card statements and did not include detailed, original receipts or invoices."

In February 2012, the audit said, a JPAS credit card was used to secure five rooms in Meridian, Miss.

The next day, someone put more than $1,000 in meals on a JPAS credit card: Two purchases of more than $300 at Olive Garden and one more over $300 at Logan’s Roadhouse.

The report notes that at some performances, the society sold beer and wine, but the audit found that the organization “did not maintain a liquor permit to sell alcohol.”

The report indicated "JPAS had absolutely no controls over concessions. Concession items were purchased by different people, on different cards, and from different locations. Concession items and cash could easily disappear without anyone from JPAS being aware."

The audit flagged $9,000 in checks made payable to cash, recommending that JPAS never issue checks that just anyone can cash in, and saying: "it cannot be assured that these expenses were legitimate business expenses."

The audit also includes allegations that center on Assaf's hiring of his own family members.

In a section titled, “Related Party Transactions,” auditors said, "Several members of the Executive Director's family have been paid performers at JPAS productions on multiple occasions. There was no documentation that anyone other than the Executive Director, who chooses performers and sets their compensation, approved these related party transactions."

The report questions the hiring of JPAS workers as contract employees to perform acting and stage management roles.

The I-Team attempted to speak with Assaf about specifics in the preliminary report.

“I think if you keep working on this kind of hit piece you are going to hurt this organization,” Assaf said.

While JPAS has until the end of this month to respond, the parish acted immediately, based on the auditor's initial findings.

“Pending the receipt of the draft report, I have taken the steps to suspend any public funds to JPAS spending the completion of this audit,” Young said.

The I-Team spoke with some members of the board that oversees the organization. Many of them either were not yet aware of the audit or referred the I-Team to Assaf.

Assaf said there is an explanation to what the audit calls out.

“There are some absolute contradictions in there and it'll all come out. It’ll all come out,” Assaf told the I-Team.

The performing arts society holds most of its performances in Westwego and at East Jefferson High School, but also schedules events outside of its home base of Jefferson Parish.

The organization will eventually occupy the yet-to-be completed Performing Arts Center on Airline Drive.

That building has come under scrutiny for how long it's taken to build, and how much it has cost.